Creating sustainable benefits for stakeholders of organisations using the strategy mapping framework

Rae, Kirsten and Sands, John (2013) Creating sustainable benefits for stakeholders of organisations using the strategy mapping framework. e-Journal of Social and Behavioural Research in Business, 4 (2). pp. 14-32. ISSN 1838-8485

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Abstract

Purpose: This paper investigates the association between organisational commitment and sustainable financial performance where environmental and social issues are integrated into the traditional four perspectives of the strategy map framework.
Design/methodology/approach: This study involved a survey administered to executives of medium to large Australian companies. Varimax rotated factor analyses were conducted to reduce a total of 47 items related to components of the balanced scorecard’s strategy map to 6 factors – affective commitment, continuance commitment, operations customer and
innovation management value-creating processes, CSR value-creating process, customer valued attributes, and growth and productivity financial outcomes. Confirmatory factor analyses were conducted to test the goodness of fit for each measurement model. A structural equation model was used to test three hypotheses for different paths of association between organisational commitment and sustainable financial performance outcomes.
Findings/Results: Results reveal that there is an indirect association between affective commitment and financial performance mediated by (a) processes within the internal perspective, and (b) customer valued attributes within the customer perspective. An alternative mediating path through the processes within the internal perspective only was also supported by the results. However, the results indicate that when organisations make community investments, such as donations to the community or community involvement, there is no direct short term financial benefit gained by the organisation.
Research limitations/implications: As this study involved a survey and is therefore subject to the usual limitations as acknowledged in the paper. Future research could investigate the effect of a broader range of environmental and social activities within the CSR value-creating
process.
Practical implications: This study provides an approach to testing the association between organisational commitment, sustainable financial performance, environmental and social issues within the traditional four perspectives of the strategy map framework.
Originality/value: This paper adds to the literature by providing evidence about the stakeholders’ sustainable benefits related to the indirect association between organisational commitment elements, CSR value-creating process outcomes on growth and productivity financial performance.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright 2013 Australian Business Education Research Association. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 11 Feb 2015 12:04
Last Modified: 31 Mar 2017 03:31
Uncontrolled Keywords: strategy map; balanced scorecard; regulatory and social process; value-creating processes; organisational commitment; sustainability
Fields of Research : 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150311 Organisational Behaviour
17 Psychology and Cognitive Sciences > 1701 Psychology > 170107 Industrial and Organisational Psychology
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150312 Organisational Planning and Management
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910404 Productivity (excl. Public Sector)
B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910402 Management
URI: http://eprints.usq.edu.au/id/eprint/26735

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